2015 Volkswagen Gti Se on 2040-cars

Auto blog

EU formally questions French government assistance of Peugeot's finance arm

Recently, the finance arm of PSA/Peugeot-Citroën was in such debt trouble that it was pricing itself out of the car loan market. The rates it was paying to service its debt, which was rated one step above junk, were so high that it was forced to charge car-buying customers higher rates than they could find elsewhere. This was adding to Peugeot's already impressive woes by sending revenue out the door to competitors.
Two months ago a deal was worked out with the French government whereby the state would provide 7 billion euro ($9 billion USD) in bonds to guarantee the finance arm's loans. The French government could nominate someone to join the Peugeot board, Peugeot would guarantee more French jobs, and on top of that deal, other banks would provide non-guaranteed loans. The government would take no equity stake in the car company.
Although not yet finalized, the arrangement is meant to create some breathing room for Peugeot Finance to lower its interest rates for customers, and a government-nominated board member, Louis Gallois, was recently named to Peugeot's supervisory board. The arrangement was also openly questioned by at least three competitors: Ford, Renault - which is 15-percent owned by the French government after it received state aid - and the German state of Lower Saxony, itself a 15-percent shareholder in Volkswagen.

Volkswagen shows off performance-ish Passat concept

As part of its 2013 Detroit Auto Show debut package, Volkswagen has rolled out a sportier version of the Passat sedan, though it's strictly conceptual for now. A small dose of go-fast visuals have been added to the handsome Volkswagen, including 19-inch wheels, carbon-capped mirrors, an advanced front lighting system, LED taillamps and dual exhaust. Some carbon bits and upgraded leather are found inside the cabin, as well.
But the real performance chops come in the form of a 1.8-liter turbocharged four-cylinder engine that sends 250 horsepower to the Passat's front wheels via a six-speed automatic transmission. That's a good boost in power over the 170 hp of the base 2.5-liter inline-five, but not quite as potent as the 3.6-liter VR6. A lowered sport suspension and revised electronic steering are also on hand, making things slightly more involving out on the road... we assume.
It's not quite the performance concept we were hoping for, but a more enthusiastic Passat isn't necessarily a bad thing. Scroll down for the press release.

North American production of foreign marques to jump in 2014

Wards Auto has released its North American Light Vehicle Production Forecast for 2014, and the report predicts foreign manufacturers will increase production on the continent some 3.9 percent by 2014. If accurate, that should see 123,000 additional cars, trucks and vans produced in North America, swelling the total number of units produced both by domestic and foreign manufacturers to 16.9 million light vehicles from a projected 15.6 million in 2013. Much of the increase can be attributed to the fact that Toyota intends to produce another car at its Blue Springs, MS plant as well as a new Lexus model at its Georgetown, KY facility in a year's time.
Likewise, Volkswagen intends to move production of a currently imported model to its plant in Puebla, Mexico. Daimler, Honda, Nissan and Mazda also plan to build additional models on North American soil for the first time. Around two-thirds of the new North American manufacturing will take place in Mexico, helping the country soak up a full 20 percent of the content's automotive production for the first time. You can head over to the Wards Auto site for the full report.